Investors Await Completion of Debt Ceiling Deal

  • US stocks traded mixed on Tuesday as investors await completion of the debt ceiling deal.
  • The US Treasury has indicated that it could run out of money by June 5, so the clock is ticking.
  • Continued excitement surrounding artificial intelligence helped power the Nasdaq higher.

US stocks finished mixed on Tuesday, after paring earlier gains as investors await completion of the recent debt ceiling deal made between House Speaker Kevin McCarthy and President Joe Biden.

The deal would raise the debt ceiling until January 2025 and includes various spending cuts and deficit reduction measures, including keeping non-defense discretionary spending roughly flat in 2024, with only a 1% increase in 2025. 

The deal will allow the US to avoid the fast-approaching “X-date,” when the Treasury runs out of money to pay its bills. Treasury Secretary Janet Yellen estimates that day could come on June 5.

The deal still has to be voted on and passed in the House and Senate chambers of Congress before going to Biden for his signature. And several Republicans voiced opposition to the deal on Tuesday, threatening prospects of its passage.

Meanwhile, artificial intelligence stocks continued to jump on Tuesday, with shares of Nvidia jumping about 3% to a record high. The stock briefly hit a $1 trillion valuation for the first time ever.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

Here’s what else is happening this morning:

In commodities, bonds and crypto:

  • West Texas Intermediate crude oil fell 4.03% to $69.74 per barrel. Brent crude, oil’s international benchmark, dropped 4.22% to $73.82.
  • Gold rose 1.75% to $1,978.40 per ounce.
  • The yield on the 10-year Treasury fell 11 basis points to 3.69%.
  • Bitcoin rose 0.45% to $27,869, while ether jumped 0.84% to $1,908. 

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